Council Approves Hotel Tax Increase

Cost to Stay in Medford Increases; Local Meals Tax Considered

– Allison Goldsberry

Come this fall out-of-towners staying in Medford will see a small increase in their hotel bill.

In an effort to boost revenue during tough fiscal times, the Medford City Council approved a 2% hotel/lodging tax increase. The 2% bump increases the city’s share of hotel taxes to 6%. Previously, Medford was collecting a 4% tax from its only hotel, Hyatt Place.

According to Mayor Michael McGlynn, the hotel tax increase is expected to bring in an additional $233,000 over the next year once it goes into effect on October 1.

Mayor McGlynn praised the Council for increasing the hotel tax but was disappointed they tabled a decision on imposing a .75% local meals tax.

“You can’t keep saying we can’t cut services and then deny the opportunity to get the revenue,” said Mayor McGlynn.

The Council approved the hotel tax increase on a “trial basis” for one year and has yet to make a decision on the meals tax.

Council President Breanna Lungo-Koehn said the Council would have to hold a special meeting before August 31 to vote on the meals tax in order for it to go into effect October 1. She said she was not sure if the meals tax “has the votes” to get approved by the Council.

The meals tax would be a new, 0.75% local tax that would show up on diners’ bills in every Medford restaurant.

Mayor McGlynn supports the tax since it is estimated to bring in close to $100,000 in one year. He considers the tax a small one, as diners dropping $100 on a meal would only be paying an additional 75 cents.

The hotel and meals taxes are optional measures the state legislature put into place to help communities raise additional revenue without increasing property taxes. It is up to individual communities to determine to adopt the taxes.